House Bill 3409

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    Florida House of Representatives - 1998                HB 3409

        By Representative Goode






  1                      A bill to be entitled

  2         An act relating to higher education; amending

  3         s. 240.299, F.S.; providing reporting

  4         requirements for university direct-support

  5         organizations; amending s. 240.311, F.S.,

  6         relating to rules of the State Board of

  7         Community Colleges; requiring a community

  8         college district board of trustees to annually

  9         evaluate the college president; amending s.

10         240.324, F.S.; providing an additional

11         requirement for the accountability plan for

12         community colleges; amending ss. 240.331,

13         240.3315, F.S.; prescribing membership of

14         boards of directors and executive committees of

15         community college direct-support organizations

16         and statewide community college direct-support

17         organizations; restricting activities of such

18         direct-support organizations; providing

19         reporting requirements for such organizations;

20         amending s. 240.3335, F.S.; removing the

21         authority of a board of directors of a center

22         of technology innovation to acquire, lease, or

23         sublease property; amending s. 240.363, F.S.;

24         providing restrictions upon the transfer of

25         funds to a direct-support organization;

26         providing an effective date.

27

28  Be It Enacted by the Legislature of the State of Florida:

29

30         Section 1.  Subsection (6) is added to section 240.299,

31  Florida Statutes, to read:

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  1         240.299  Direct-support organizations; use of property;

  2  board of directors; audit; facilities.--

  3         (6)  ANNUAL BUDGETS AND REPORTS.--Each direct-support

  4  organization shall submit to the university president and the

  5  Board of Regents its federal Internal Revenue Service

  6  Application for Recognition of Exemption form (Form 1023) and

  7  its federal Internal Revenue Service Return of Organization

  8  Exempt from Income Tax form (Form 990).

  9         Section 2.  Paragraph (f) of subsection (3) of section

10  240.311, Florida Statutes, is amended to read:

11         240.311  State Board of Community Colleges; powers and

12  duties.--

13         (3)  The State Board of Community Colleges shall:

14         (f)  Specify, by rule, procedures to be used by the

15  boards of trustees in the annual periodic evaluations of

16  presidents and formally review the evaluations of presidents

17  by the boards of trustees.

18         Section 3.  Present paragraph (g) of subsection (1) of

19  section 240.324, Florida Statutes, is redesignated as

20  paragraph (h) and a new paragraph (g) is added to that

21  subsection, to read:

22         240.324  Community college accountability process.--

23         (1)  It is the intent of the Legislature that a

24  management and accountability process be implemented which

25  provides for the systematic, ongoing improvement and

26  assessment of the improvement of the quality and efficiency of

27  the State Community College System.  Accordingly, the State

28  Board of Community Colleges and the community college boards

29  of trustees shall develop and implement a plan to improve and

30  evaluate the instructional and administrative efficiency and

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  1  effectiveness of the State Community College System.  This

  2  plan must address the following issues:

  3         (g)  Institutional assessment efforts related to the

  4  requirements of s. III in the Criteria for Accreditation of

  5  the Commission on Colleges of the Southern Association of

  6  Colleges and Schools.

  7         Section 4.  Section 240.331, Florida Statutes, is

  8  amended to read:

  9         240.331  Community college direct-support

10  organizations.--

11         (1)  DEFINITIONS.--For the purposes of this section:

12         (a)  "Community college direct-support organization"

13  means an organization that which is:

14         1.  A Florida corporation not for profit, incorporated

15  under the provisions of chapter 617 and approved by the

16  Department of State.

17         2.  Organized and operated exclusively to receive,

18  hold, invest, and administer property and to make expenditures

19  to, or for the benefit of, a community college in this state.

20  The direct-support organization may, at the request of the

21  district board of trustees, provide residency opportunities on

22  or near the college campus for students.  Community College

23  Program Fund and Public Education Capital Outlay funds may not

24  be used to construct, maintain, or operate such facilities.

25         3.  An organization that which the board of trustees,

26  after review, has certified to be operating in a manner

27  consistent with the goals of the community college and in the

28  best interest of the state.  Any organization that which is

29  denied certification by the board of trustees may shall not

30  use the name of the community college that which it serves.

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  1         (b)  "Personal services" includes full-time or

  2  part-time personnel as well as payroll processing.

  3         (2)  BOARD OF DIRECTORS.--The chairperson of the board

  4  of trustees shall appoint a representative to the board of

  5  directors and the executive committee of each statewide,

  6  direct-support organization established under this section,

  7  including those established before July 1, 1998. The president

  8  of the community college for which the direct-support

  9  organization is established, or the president's designee,

10  shall also serve on the board of directors and the executive

11  committee of the direct-support organization, including any

12  direct-support organization established before July 1, 1998.

13         (3)(2)  USE OF PROPERTY.--

14         (a)  The board of trustees is authorized to permit the

15  use of property, facilities, and personal services at any

16  state community college by any community college

17  direct-support organization, subject to the provisions of this

18  section.

19         (b)  The board of trustees is authorized to prescribe

20  by rule any condition with which a community college

21  direct-support organization must comply in order to use

22  property, facilities, or personal services at any state

23  community college.

24         (c)  The board of trustees may shall not permit the use

25  of property, facilities, or personal services at any state

26  community college by any community college direct-support

27  organization that which does not provide equal employment

28  opportunities to all persons regardless of race, color,

29  national origin, sex, age, or religion.

30         (4)  ACTIVITIES; RESTRICTIONS.--

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  1         (a)  A direct-support organization may, at the request

  2  of the district board of trustees, provide residency

  3  opportunities on or near campus for students.

  4         (b)  A community college may not pledge public funds or

  5  property to pay for or guarantee the payment of any bonds or

  6  other obligation issued by a direct-support organization or by

  7  a unit of local government on behalf of a direct-support

  8  organization. However, a community college that has incurred

  9  such a legal obligation before March 6, 1998, may continue to

10  honor that obligation. Each community college board of

11  trustees may adopt policies that provide procedures for

12  transferring to the direct-support organization of that

13  community college, for administration by the organization,

14  contributions made to the community college.

15         (c)  A direct-support organization that constructs

16  facilities for use by a community college or its students must

17  comply with all requirements of this chapter relating to the

18  construction of facilities by a community college, including

19  requirements for competitive bidding.

20         (d)  Any transaction or agreement between one

21  direct-support organization and another direct-support

22  organization or between a direct-support organization and a

23  center of technology innovation designated under s. 240.335

24  must be approved by the district board of trustees.

25         (5)  ANNUAL BUDGETS AND REPORTS.--Each direct-support

26  organization shall submit to the board of trustees its federal

27  Internal Revenue Service Application for Recognition of

28  Exemption form (Form 1023) and its federal Internal Revenue

29  Service Return of Organization Exempt From Income Tax form

30  (Form 990).

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  1         (6)(3)  ANNUAL AUDIT.--Each direct-support organization

  2  shall make provisions for an annual postaudit of its financial

  3  accounts to be conducted by an independent certified public

  4  accountant in accordance with rules to be promulgated by the

  5  district board of trustees.  The annual audit report must

  6  shall be submitted to the Auditor General, the State Board of

  7  Community Colleges, and the board of trustees for review.  The

  8  board of trustees and the Auditor General may shall have the

  9  authority to require and receive from the organization or from

10  its independent auditor any detail or supplemental data

11  relative to the operation of the organization.  The identity

12  of donors who desire to remain anonymous shall be protected,

13  and that anonymity shall be maintained in the auditor's

14  report.  All records of the organization, other than the

15  auditor's report, any information necessary for the auditor's

16  report, any information related to the expenditure of funds,

17  and any supplemental data requested by the board of trustees

18  and the Auditor General, shall be confidential and exempt from

19  the provisions of s. 119.07(1).

20         Section 5.  Section 240.3315, Florida Statutes, is

21  amended to read:

22         240.3315  Statewide community college direct-support

23  organizations.--

24         (1)  DEFINITIONS.--For the purposes of this section:

25         (a)  "Statewide community college direct-support

26  organization" means an organization that which is:

27         1.  A Florida corporation not for profit, incorporated

28  under the provisions of chapter 617 and approved by the

29  Department of State.

30         2.  Organized and operated exclusively to receive,

31  hold, invest, and administer property and to make expenditures

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  1  to, or for the benefit of, the Community College System in

  2  this state.

  3         3.  An organization that which the State Board of

  4  Community Colleges, after review, has certified to be

  5  operating in a manner consistent with the goals of the

  6  Community College System and in the best interest of the

  7  state. Any organization that which is denied certification by

  8  the State Board of Community Colleges may shall not use the

  9  name of any community college.

10         (b)  "Personal services" includes full-time or

11  part-time personnel as well as payroll processing.

12         (2)  BOARD OF DIRECTORS.--The chairperson of the State

13  Board of Community Colleges may appoint a representative to

14  the board of directors and the executive committee of any

15  statewide, direct-support organization established under this

16  section or s. 240.331. The chairperson of the State Board of

17  Community Colleges, or the chairperson's designee, shall also

18  serve on the board of directors and the executive committee of

19  any direct-support organization established to benefit the

20  State Community College System.

21         (3)(2)  USE OF PROPERTY.--

22         (a)  The State Board of Community Colleges may is

23  authorized to permit the use of property, facilities, and

24  personal services of the Division of Community Colleges by any

25  statewide community college direct-support organization,

26  subject to the provisions of this section.

27         (b)  The State Board of Community Colleges may is

28  authorized to prescribe by rule any condition with which a

29  statewide community college direct-support organization must

30  comply in order to use property, facilities, or personal

31  services of the Division of Community Colleges.

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  1         (c)  The State Board of Community Colleges may shall

  2  not permit the use of property, facilities, or personal

  3  services of the Division of Community Colleges by any

  4  statewide community college direct-support organization that

  5  which does not provide equal employment opportunities to all

  6  persons regardless of race, color, national origin, sex, age,

  7  or religion.

  8         (4)  RESTRICTIONS.--

  9         (a)  A statewide, direct-support organization may not

10  use public funds to acquire, construct, maintain, or operate

11  any facilities.

12         (b)  Any transaction or agreement between a statewide,

13  direct-support organization and any other direct-support

14  organization or between a statewide, direct-support

15  organization and a center of technology innovation designated

16  under s. 240.3335 must be approved by the State Board of

17  Community Colleges.

18         (5)  ANNUAL BUDGETS AND REPORTS.--Each direct-support

19  organization shall submit to the State Board of Community

20  Colleges its federal Internal Revenue Service Application for

21  Recognition of Exemption form (Form 1023) and its federal

22  Internal Revenue Service Return of Organization Exempt From

23  Income Tax form (Form 990).

24         (6)(3)  ANNUAL AUDIT.--A statewide community college

25  direct-support organization shall make provisions for an

26  annual postaudit of its financial accounts to be conducted by

27  an independent certified public accountant in accordance with

28  rules to be adopted by the State Board of Community Colleges.

29  The annual audit report shall be submitted to the Auditor

30  General and the State Board of Community Colleges for review.

31  The State Board of Community Colleges and the Auditor General

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  1  shall have the authority to require and receive from the

  2  organization or from its independent auditor any detail or

  3  supplemental data relative to the operation of the

  4  organization. The identity of a donor or prospective donor who

  5  desires to remain anonymous and all information identifying

  6  such donor or prospective donor are confidential and exempt

  7  from the provisions of s. 119.07(1) and s. 24(a), Art. I of

  8  the State Constitution. Such anonymity shall be maintained in

  9  the auditor's report.

10         Section 6.  Subsection (7) of section 240.3335, Florida

11  Statutes, is amended to read:

12         240.3335  Centers of technology innovation.--

13         (7)  Each center shall have a board of directors with

14  at least five members who shall be appointed by the district

15  board of trustees. The board of directors is shall be

16  responsible for overseeing the operation of the center,

17  approval of the annual budget, and setting policy to guide the

18  director in the operation of the center. The board of

19  directors shall have the authority to acquire, lease, and

20  sublease property subject to the provisions of general law.

21  The board of directors shall consist of at least the

22  following:

23         (a)  The director of the center.

24         (b)  The vice president of academic affairs, or the

25  equivalent, of the community college.

26         (c)  The vice president of business affairs, or the

27  equivalent, of the community college.

28         (d)  Two members designated by the president of the

29  community college.

30         Section 7.  Section 240.363, Florida Statutes, is

31  amended to read:

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  1         240.363  Financial accounting and expenditures.--All

  2  funds accruing to the benefit of a community college must

  3  shall be received, accounted for, and expended in accordance

  4  with rules of the State Board of Community Colleges. A

  5  community college may not transfer public funds or property to

  6  a direct-support organization or pledge public funds or

  7  property to pay or guarantee the payment of any bonds or other

  8  obligations issued by a direct-support organization or by a

  9  unit of local government on behalf of a direct-support

10  organization, except that each community college board of

11  trustees may adopt policies that provide procedures for

12  transferring private contributions to the community college to

13  the direct-support organization of that the community college

14  for administration by such organization private contributions

15  made to the community college. However, if a community college

16  had incurred such a legal obligation before March 6, 1998, it

17  may continue to honor that obligation.

18         Section 8.  This act shall take effect July 1, 1998.

19

20            *****************************************

21                          SENATE SUMMARY

22    Provides reporting requirements for university
      direct-support organizations. Provides an additional
23    requirement for the accountability plan for community
      colleges. Prescribes membership of boards of directors
24    and executive committees of community college
      direct-support organizations and statewide community
25    college direct-support organizations. Restricts the
      activities of such direct-support organizations. Provides
26    reporting requirements for such organizations. Removes
      from a board of directors of a center of technology
27    innovation the authority to acquire, lease, or sublease
      property.
28

29

30

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